Stalled Lowertown project is back on track

Squabble, lawsuits delayed construction for two years.

By KEVIN GILES, Star Tribune

Last update: November 13, 2009 - 8:10 PM

This time, they say, the hole in the middle of St. Paul's Lowertown will disappear for good.

Nearly two years after developers broke ground for construction of the Farmers Market Flats building at Fifth and Wall streets, the city and Flannery Construction, Inc., have set aside past disputes and say they will move forward.

The estimated $13.5 million development will feature a 15,000-square-foot first floor commercial space and 48 market rate rental housing units on the floors above. An indoor Farmers Market from the earlier proposal remains a possibility depending on financing, Natalie Fedie, a city spokeswoman, said Friday.

"Completing this project is a win for everyone, especially the residents and businesses in Lowertown who finally will be getting a valuable addition to a growing part of downtown," said Mayor Chris Coleman. "The site has stood vacant far too long. Restarting construction and completing this project only continues the wave of revitalization that has turned Lowertown into a premier destination for residents, workers and visitors."

Until Thursday's announcement, construction had been stalled in a flurry of lawsuits, countersuits and finger pointing. Construction on Farmers Market Flats began in spring 2008, but ended after a dispute between the developer and Flannery over payments for work performed.

The city and Flannery "suspended" the suits and plan to rebid the project over the winter months, Fedie said.

Construction comes at a time when Lowertown is awash with revitalization. More than 220 employees with Cray, Inc., are now moving into their new offices in the former Galtier Plaza -- now called Cray Plaza -- soon after several new bars and restaurants opened on the perimeter of adjacent Mears Park.

Two other significant Lowertown developments are emerging as well. Union Depot will be revived as a regional transportation hub, and the city wants to build a Saints municipal ballpark in Lowertown to replace the aging Midway Stadium.

Staff writer Chris Havens contributed to this story.

Kevin Giles • 612-673-4432

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